Banking in Europe as an American: FATCA, Wise, and Local Accounts
Banking is one of the first practical hurdles Americans meet in Europe. U.S. citizenship brings extra reporting, a transfer service is not the same as a local bank, and a landlord, utility or residence office may ask for a local account. Here is what the rules say, country by country.
The short answer. Keep your U.S. accounts while you set up. Under FATCA, foreign banks report on accounts held by U.S. customers1, so expect extra forms. Once you are legally resident in an EU country, you are entitled to a basic payment account, and a bank can refuse only on limited grounds such as money-laundering rules2. On the U.S. side, file an FBAR if your foreign accounts together exceed $10,000 at any time in the year3, and Form 8938 above higher thresholds4.
Need the route mapped? On a free 30-minute call we look at your income, timeline and shortlist, and tell you what to check next.
Why Banking Is Harder Than Americans Expect
In the United States, a bank account is a background task. In Europe it becomes part of the move itself: rent, utilities, phone contracts, insurance and tax payments can all run through it. In Portugal, for example, the tax number (NIF) is what lets you open a bank account5.
U.S. citizenship adds a layer: banks must identify and report U.S. customers under FATCA1. Plan banking alongside your visa, housing and tax number, rather than leaving it until you arrive.
Our planning rule: do not count on “I will open an account when I get there”. Work out which number, address and documents your bank will want, and in what order you can get them.
What FATCA Means for Americans in Europe
The Foreign Account Tax Compliance Act generally requires foreign financial institutions to report on the foreign assets held by their U.S. account holders, or face withholding on certain payments1. Portugal, for example, has an agreement with the United States to implement it, signed in 2015 and in force since August 10, 20166.
For you, FATCA can show up as extra questions and forms when you open an account: whether you are a U.S. citizen or tax resident, and your U.S. taxpayer number. It does not prevent Americans from banking in Europe. Some banks may still be reluctant to take U.S. customers, which is why the EU basic account right below matters.
Your EU Right to a Basic Account
If you are legally resident in an EU country, you are entitled to open a “basic payment account”, and banks cannot refuse it just because you do not live in the country where the bank is established2. A bank can refuse if you do not comply with EU money-laundering and terrorist-financing rules, and in some countries if you already have a similar account with another bank there2. Where a fee is charged, it should be reasonable2; Portugal caps total annual fees on its minimum banking services account at 1% of its social support index, about €5.37 in 202678.
The directive behind this right adds three practical points9:
- A deadline. The bank must open the account or refuse it without undue delay, and at the latest 10 business days after receiving a complete application9.
- Reasons in writing. If it refuses, it must tell you the specific reason in writing and free of charge, unless that would breach security or money-laundering rules, and tell you how to complain9.
- No nationality test. Banks must not discriminate against consumers legally resident in the EU by reason of their nationality or place of residence when they apply for a payment account9.
Before you sign, any account provider must give you a short fee information document listing the fees for its most common services9. Use it to compare banks.
FBAR and Form 8938: The U.S. Reporting Layer
Opening accounts abroad creates U.S. reporting duties34:
| Report | When it applies | Filed with |
|---|---|---|
| FBAR (FinCEN Form 114) | Your foreign financial accounts together exceed $10,000 at any time during the calendar year3 | FinCEN, separately from your tax return3 |
| Form 8938 (FATCA) | Living abroad: more than $200,000 at year end or $300,000 at any time (any return other than a joint return); $400,000 or $600,000 (joint return)4 | The IRS, with your tax return4 |
| Foreign income | Interest, dividends, rent, business income and pensions are part of worldwide income10 | Your U.S. tax return10 |
Filing Form 8938 does not relieve you of filing an FBAR, or the other way round; you may need both11. The FBAR also covers accounts over which you only have signature authority, such as a business account you can sign on3. Our sister site eTaxNexus compares the two forms in FBAR vs FATCA Form 8938.
Where Wise and Similar Services Fit
Money-transfer and multi-currency services such as Wise are useful for moving dollars into euros and paying early costs before a local account works. Two points to check before you rely on one:
- Protection. EU deposit protection covers money held at banks, up to €100,000 per person per bank2. Under EU law, an electronic money institution may not take deposits; it must instead safeguard the funds it receives in exchange for e-money12. Ask any non-bank provider which company holds your money, under which license, and how it is safeguarded, and read its terms before holding large balances there.
- Acceptance. A landlord, utility or residence office may ask for an account at a local bank. Check before you depend on a transfer service alone.
What a transfer service can help with
- Moving dollars into euros when you choose, rather than at a card’s rate.
- Holding short-term balances in more than one currency.
- Paying deposits and early costs before your local account works.
- Receiving some payments while your local banking is being set up.
What it may not replace
- A local bank account a landlord, insurer or residence office asks for.
- A mortgage or other lending relationship.
- Business banking, if you register as self-employed or run a company.
- Bank deposit protection, which applies to deposits at banks212.
When you send money abroad from the United States as a consumer, a remittance provider must tell you the fees and the exchange rate before you pay, and you generally have up to 30 minutes to cancel at no charge, unless the money has already been picked up or deposited13. We see these services as a bridge and a currency tool, not the only foundation for your finances in Europe.
Your New Country May Tax and Track Your Savings Too
U.S. reporting is only half of it. Once you are resident, your new country has its own rules for your accounts and investment income, including those still held in the United States:
- Portugal taxes residents’ dividends and interest at a special rate of 28%, including foreign income not taxed at source in Portugal; residents may opt to aggregate this income instead, and 35% applies to income from listed tax havens14.
- Spain asks residents to file an information return (Modelo 720) when foreign accounts, foreign securities and insurance, or foreign real estate each exceed €50,000 in total, between January 1 and March 31 of the following year15.
- Italy charges residents IVAFE on assets held abroad: 0.2% a year on the value of financial products (0.4% in listed tax havens), and a fixed €34.20 a year on each foreign current or savings account, unless the average annual balance of your accounts with that bank is €5,000 or less1617.
Before you move, ask your U.S. bank and brokerage whether they will keep serving you at a foreign address, and ask a cross-border tax adviser how your accounts will be taxed in both countries.
Why a Local Account Still Matters
U.S. cards and a transfer service can carry a short stay. For a real move, a local account is often needed for:
- Rent and utility direct debits.
- Phone, internet and insurance contracts.
- Tax payments and refunds.
- Proof of funds for residence renewals.
- A local salary, pension or business income.
- School, childcare and town hall payments.
Inside the EU, a company that collects a direct debit or accepts a transfer must not insist that your account be in a particular EU country, as long as the account can be reached under the EU’s euro payment rules18. That rule covers accounts located in the EU; it does not oblige anyone to accept a U.S. account.
If you receive Social Security, the SSA can pay directly into a bank account in countries on its international direct deposit list, which includes Portugal, Spain and France19.
How Banking Differs by European Destination
The EU right to a basic account is the same everywhere in the EU, but each country applies it through its own law, and each has its own identification numbers. Some official rules for the countries Americans ask us about most:
| Country | Local number to plan for | Official rule worth knowing |
|---|---|---|
| Portugal | Tax number (NIF), which lets you open a bank account5; it is also issued to non-resident foreign citizens20 | A minimum banking services account, with total annual fees capped at 1% of the social support index, about €5.37 in 202678 |
| Spain | Foreigner identity number (NIE), which is also a foreign national’s tax number21; from abroad you can request it through a Spanish consulate; the police must decide within five days of receiving the request, and no answer counts as a refusal22 | Banks that offer payment accounts must offer a basic account to anyone legally resident in the EU; they must refuse if anti-money-laundering information is missing, on national-security or public-order grounds, or if you already hold an account in Spain that offers the same services23 |
| France | Proof of address: a water or phone bill or rent receipt less than three months old, or the title to your main home24 | If a bank refuses you, or does not answer within 15 days, the Banque de France names a bank that must open an account with basic services, free of charge; people living in France, or legally resident in another EU country and not acting for business, can use this “droit au compte”24 |
| Italy | Tax code (codice fiscale); non-residents can request it from an Italian consulate25 | A basic account (conto di base) can be refused only if you already have a payment account in Italy, want it for business, or are not legally resident; a refusal must be in writing within 10 working days. Pensioners with a gross pension up to €18,000 a year pay only the €34.20 annual stamp duty26 |
| Netherlands | Citizen service number (BSN), given automatically when you register in the Personal Records Database (BRP)27; before you move, Americans can get one at the non-residents (RNI) desk in Breda or Venlo28 | If you cannot open an ordinary account, you have a right to a basic payment account at one of four large banks named by the government; a bank may refuse if you cannot show a genuine link to the Netherlands, such as living, studying or working there29 |
| Ireland | Photo ID plus a separate proof of address less than six months old, such as a utility bill; in some cases a PPS number30 | A basic bank account for people legally resident in the EU with no other current account in Ireland, free of everyday charges for at least the first year31 |
| Germany | Tax identification number (IdNr): 11 digits, valid for life, sent only by letter32 | Any consumer lawfully resident in the EU, including people with no fixed address, is entitled to a basic account; the bank must offer it within 10 business days33 |
| Switzerland | Not in the EU, so the EU basic-account right does not apply9 | Swiss banks report U.S. accounts to the IRS with the client’s consent under a FATCA agreement in force since June 2, 2014; a new agreement signed June 27, 2024 is planned to take effect no earlier than January 1, 202934 |
A basic account covers everyday services: paying in, cash withdrawals, direct debits, card payments and transfers within the EU9. Ask the bank what else it offers and at what fee.
Documents Banks May Ask For
European banks must identify you and verify your identity from reliable, independent documents, and assess the purpose of the account35. Expect more paperwork than for a U.S. account.
1. Identity documents
Your passport and, once you have it, your residence card. Irish guidance, for example, asks for at least one photo ID and a separate proof of address; the same document cannot prove both, and the name on each must match30.
2. Local tax or residence number
The NIF in Portugal5, the NIE in Spain21, the codice fiscale in Italy25 or the BSN in the Netherlands27. Some can be requested before you move: Spain’s NIE and Italy’s codice fiscale through a consulate2225, and Portugal issues NIFs to non-residents20. The Dutch BSN comes when you register in the Personal Records Database (BRP) at your municipality once you live at a Dutch address27, or, before you move, at a non-residents (RNI) desk, which for Americans means Breda or Venlo28.
3. Proof of address
A lease, utility bill or registration certificate. In Ireland, banks may accept a utility bill, an insurance policy or a government letter showing your address, less than six months old (12 for an insurance policy)30. France’s right-to-an-account procedure asks for a water or phone bill or rent receipt less than three months old, or the title to your main home24. If your first weeks are in temporary housing, ask the bank what it accepts before you arrive.
4. Source of funds
Banks must monitor the relationship and, where necessary, the source of funds35; Irish guidance says you can be asked to confirm where your money comes from30. Bring recent bank statements, payslips, pension or Social Security award letters, tax returns and, for a large transfer, the paper trail behind it.
5. U.S. tax information
Your U.S. citizenship, your U.S. taxpayer identification number (for most Americans, the Social Security number) and a FATCA self-certification1. Under Switzerland’s current agreement, banks report U.S. accounts with the client’s consent34.
A Practical Banking Setup in Four Layers
We suggest not relying on one account. Each layer solves a different problem:
Layer 1: Your U.S. bank
- Keeps Social Security or other U.S. income arriving where it always has.
- Pays U.S. bills and credit cards, and keeps your U.S. credit history alive.
- Gives you emergency access to money while European accounts are new.
- Stays open until your European setup works. Ask the bank in writing whether it will serve you at a foreign address.
Layer 2: A transfer service
- Converts dollars to euros on your schedule.
- Holds short-term balances in more than one currency.
- Pays early costs before the local account is open.
Layer 3: A local bank
- Pays rent and utilities by direct debit.
- Supports visa and residence steps, including proof of funds.
- Receives local refunds, salary or pension.
- Where needed, opened under the basic-account right2.
Layer 4: Professional review
Remote Workers and Business Owners Need Extra Care
Business banking is more complicated: freelancers, consultants, U.S. LLC owners and entrepreneurs under routes such as the Dutch-American Friendship Treaty may need a business account and local registration. For DAFT, the IND checks at extension that the invested capital stayed in the business36. A personal transfer account is usually not enough for that.
- Freelancers: ask whether local registration requires a business account.
- U.S. LLC owners: ask a cross-border adviser how your new country treats the LLC and its accounts.
- Remote employees: confirm your employer allows the move and how payroll will work.
- DAFT applicants: plan the Dutch business account around the capital the IND will check36.
- Signers: a business account you can sign on counts toward the FBAR3.
The IRS advises opening a business checking account when you start a business and keeping it separate from your personal account37. Map the business banking before clients, contracts and visa documents are moved to a new country. Our digital nomad visa comparison covers the remote-work routes.
Common Banking Mistakes Americans Make
1. Closing U.S. accounts too early
You may still need U.S. deposits, credit cards, bill payments and tax refunds. The SSA pays into a U.S. account or, in countries on its international direct deposit list, straight into a local account19.
2. Assuming a transfer service is the same as a local bank
An e-money institution may not take deposits12, and EU deposit protection applies to bank deposits2. It may also not satisfy a landlord or residence office.
3. Forgetting the FBAR
Ordinary everyday accounts count toward the $10,000 total3. The FBAR is due April 15, with an automatic extension to October 15, and is filed electronically through FinCEN’s BSA E-Filing System, not with your tax return38.
4. Underestimating FATCA friction
Banks must identify and report U.S. customers1, so opening an account can take longer. Start early, bring your U.S. tax details, and if you are legally resident in the EU, remember the basic-account right and its 10-business-day deadline9.
5. Mixing personal and business money
The IRS tells new businesses to keep business and personal accounts separate37. Abroad, where two tax systems may look at the same account, that matters even more.
6. Using only U.S. credit cards
Rent, utilities and many local bills are paid by direct debit or bank transfer. The EU rule against refusing an account in another EU country covers accounts located in the EU18, not U.S. cards or accounts.
7. Forgetting currency risk
Between September 24, 2021 and September 24, 2026, the ECB’s reference rate ranged from $0.9565 per euro (September 28, 2022) to $1.1974 (January 28, 2026)39. By our arithmetic, a €2,000 monthly budget would have cost $1,913 at the low and $2,395 at the high. Keep a buffer, and avoid converting only in an emergency.
Banking Is Part of the Move’s Infrastructure
For Americans moving to Europe, banking is not only about where to keep euros. It touches housing, visas, utilities, taxes and daily life. The setup that holds up is layered: keep reliable U.S. banking, use a transfer service with care, open a local account once you can, and get the U.S. reporting reviewed before balances grow or business activity begins.
Our real cost of moving article puts transfer fees and tax preparation into the first-year budget, and a free discovery call can map the order of accounts, tax number, visa and housing for your route.
Questions Americans Ask About Banking in Europe
Can Americans open bank accounts in Europe?
Do I need to file an FBAR?
What are the Form 8938 thresholds for Americans abroad?
More than $200,000 at year end or $300,000 at any time if you do not file a joint return; $400,000 or $600,000 if you file jointly4.
Is Wise enough on its own?
Can I open a European account before I move?
Sometimes, but the EU right to a basic account belongs to consumers legally resident in the EU9. Before you are resident, whether a bank opens an account for you is its own decision, so ask it which number, address and documents it needs.
Can Social Security be paid into a European account?
Yes, in countries on the SSA’s international direct deposit list, including Portugal, Spain and France19. You can also keep a U.S. account for U.S. bills and as a fallback.
Related Reading
Social Security Abroad
Direct deposit abroad and the SSA questionnaire.
Read the article →
The Real Cost of Moving Abroad
Transfer fees and tax preparation in the first-year budget.
Read the article →
The Dutch-American Friendship Treaty
A business route where banking evidence matters.
Read the article →Relocation Planner
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Read the Country Pages
The official rules, costs and taxes for each country, checked September 2026.
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Where Every Figure Comes From
We cite official sources only: laws and official gazettes, government agencies, consulates, the EU and U.S. federal agencies. Each was read on the date shown. If you spot something that has changed, email [email protected].
- Foreign Account Tax Compliance Act (FATCA). Internal Revenue Service. Official page. Checked .
- Bank accounts in the EU: the right to a basic payment account. Your Europe, European Union. Official page. Checked .
- Report of Foreign Bank and Financial Accounts (FBAR). FinCEN, U.S. Treasury. Official page. Checked .
- Do I need to file Form 8938? Internal Revenue Service. Official page. Checked .
- How to get a NIF and NISS: guide for foreign citizens. gov.pt (ePortugal). Official page. Checked .
- Portugal–United States FATCA agreement (2015, in force 2016). Ministério Público, treaty database. Official page. Checked .
- Minimum banking services account, brochure. Banco de Portugal. Official page. Checked .
- Portaria 480-A/2025/1: social support index (IAS) for 2026, €537.13. Diário da República. Official page. Checked .
- Payment Accounts Directive (Directive 2014/92/EU), articles 4, 15, 16 and 18: fee information document, non-discrimination, the right to a basic payment account and its limits. EUR-Lex. Official page. Checked .
- U.S. citizens and resident aliens abroad. Internal Revenue Service. Official page. Checked .
- Basic questions and answers on Form 8938 (filing both Form 8938 and the FBAR). Internal Revenue Service. Official page. Checked .
- Electronic Money Directive (Directive 2009/110/EC), articles 6 and 7: e-money institutions may not take deposits and must safeguard customer funds. EUR-Lex. Official page. Checked .
- What is a remittance transfer and what are my rights? Consumer Financial Protection Bureau. Official page. Checked .
- CIRS article 72: special rates (28% capital income, 25% rents). Portal das Finanças. Official page. Checked .
- General Tax Management Regulation (Royal Decree 1065/2007), articles 42 bis to 42 ter: foreign asset return (Modelo 720). Boletín Oficial del Estado (BOE). Official page. Checked .
- Decree-Law 201/2011, article 19: IVIE and IVAFE on foreign property and financial assets. Normattiva. Official page. Checked .
- IVAFE: taxable base and rates (fixed €34.20 per account; not due if the average annual balance is €5,000 or less). Agenzia delle Entrate. Official page. Checked .
- SEPA Regulation (EU) No 260/2012, article 9: payment accessibility. EUR-Lex. Official page. Checked .
- International direct deposit countries (POMS GN 02402.220). Social Security Administration. Official page. Checked .
- Tax number (NIF) for non-resident foreign citizens, leaflet, July 2025. Tax and Customs Authority. Official page. Checked .
- General Tax Management Regulation (Royal Decree 1065/2007), article 20: for foreign nationals the tax number is the NIE. Boletín Oficial del Estado (BOE). Official page. Checked .
- Immigration Regulation (Royal Decree 1155/2024), consolidated: article 205, foreigner identity number (NIE). Boletín Oficial del Estado (BOE). Official page. Checked .
- Royal Decree-Law 19/2017 on basic payment accounts, articles 3 and 4. Boletín Oficial del Estado (BOE). Official page. Checked .
- The right to a bank account (droit au compte), page checked October 28, 2025. Service-Public.fr, Directorate of Legal and Administrative Information, France. Official page. Checked .
- Tax identification number (codice fiscale) for foreign citizens. Agenzia delle Entrate. Official page. Checked .
- The basic account (conto di base): who it is for and when it can be free (September 24, 2026). Bank of Italy. Official page. Checked .
- Citizen service number (BSN). Government of the Netherlands. Official page. Checked .
- How can I get a citizen service number (BSN) if I live abroad? (registration in the Non-residents Records Database, RNI). NetherlandsWorldwide, Government of the Netherlands. Official page. Checked .
- Refused a payment account? The right to a basic payment account (basisbetaalrekening). Rijksoverheid, Government of the Netherlands. Official page. Checked .
- Proof of identity to open a bank account (page edited April 30, 2025). Citizens Information Board, Ireland. Official page. Checked .
- Basic bank accounts (page edited July 21, 2026). Citizens Information Board, Ireland. Official page. Checked .
- Tax identification number (IdNr). Federal Central Tax Office (BZSt), Germany. Official page. Checked .
- Payment Accounts Act (Zahlungskontengesetz), section 31: the right to a basic account. Federal Ministry of Justice, Germany (gesetze-im-internet.de). Official page. Checked .
- FATCA agreement with the United States (Model 2 since June 2, 2014; Model 1 signed June 27, 2024). State Secretariat for International Finance (SIF), Switzerland. Official page. Checked .
- Anti-Money-Laundering Directive (EU) 2015/849, article 13: customer due diligence. EUR-Lex. Official page. Checked .
- Residence permit for a self-employed person, including the Dutch-American Friendship Treaty (page updated September 23, 2026). IND, Netherlands immigration service. Official page. Checked .
- Publication 583, Starting a Business and Keeping Records (December 2024): keep a separate business account. Internal Revenue Service. Official page. Checked .
- Report of Foreign Bank and Financial Accounts (FBAR): due April 15, automatic extension to October 15 (page reviewed July 30, 2026). Internal Revenue Service. Official page. Checked .
- Euro foreign exchange reference rates: U.S. dollar, daily series (EXR.D.USD.EUR.SP00.A), September 2021 to September 2026. European Central Bank. Official page. Checked .
General information, not advice. Quantum Jetset does not give legal, tax, immigration, financial or investment advice. Rules and figures change; check the official source and speak to a qualified professional before you act.
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